Qualcomm Incorporated (Nasdaq: QCOM) today announced that its Board of Directors has approved a 43 percent increase in the Company's quarterly cash dividend from $0.07 to $0.10 per share of common stock. The new dividend rate will be effective for the quarterly dividend payable on June 25, 2004 to stockholders of record at the close of business on May 28, 2004. This dividend increase raises the annual dividend rate to $0.40 per share of common stock.
"We are pleased to again increase our quarterly dividend. Given Qualcomm's strong cash position and the favorable tax treatment for dividends in the United States, we currently believe regular dividend payments are an excellent means of providing current returns to stockholders, while reinvesting sufficiently in our core businesses to provide superior long-term capital growth," said Dr. Irwin Mark Jacobs, chairman and CEO of Qualcomm. "We remain confident that our resources will allow us to continue supporting customers worldwide with a broad range of new technology, chipsets, software and services. We remain focused on enhancing the wireless user experience, both consumer and enterprise, to further accelerate the growth of products and services using CDMA technology."
The Board of Directors has approved the payment of ongoing quarterly dividends, the record and payment dates for which will be announced on a quarterly basis. While ongoing dividend payments are intended, such payments will be subject to the continuing availability of sufficient capital resources and liquidity, legally available funds under Delaware Corporate law and the Board's periodic evaluation of the strategic utilization of the Company's cash resources.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
This news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: changing global economic conditions, particularly in the telecommunications and Internet-related industries and the resulting uncertainty in forecasting future results; the ability to sustain or improve operational efficiency and profitability; the development, deployment and commercial acceptance of evolving CDMA technology standards; the strategic utilization of cash resources; developments in current or future litigation; and international business activities, as well as the other risks detailed from time-to-time in the Company's SEC reports.